Michaels plans new debt financing for buyout by Apollo Global

By Sara Rosenberg

New York, March 3 – Michaels Cos. has received a commitment for debt financing to help fund its acquisition by Apollo Global Management Inc., according to a news release.

Credit Suisse, Barclays, Wells Fargo, RBC Capital Markets, Deutsche Bank, Mizuho and Bank of America provided the debt commitment.

Other funds for the transaction will come from equity.

Under the agreement, Michaels is being bought for $22.00 per share in cash. The transaction values Michaels at an equity value of about $3.3 billion.

Closing is expected in the first half of the company’s fiscal year, subject to customary conditions, including regulatory approval and the tender of shares representing at least a majority of the company’s outstanding common stock.

There is a 25-day “go-shop” period.

Michaels is an Irving, Tex.-based retailer of arts and crafts supplies and home decor products.

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